Deal happened in connivance of UPTRON, LMC?

The circumstances in which the UPTRON property was bought by a private builder has all the more raised a needle of suspicion not only on IFCI but also on state government agencies like the Lucknow Municipal Corporation (LMC) and the UPTRON management.

TNN | Mar 20, 2013, 04.50 AM IST

LUCKNOW: The circumstances in which the UPTRON property was bought by a private builder has all the more raised a needle of suspicion not only on IFCI but also on state government agencies like the Lucknow Municipal Corporation (LMC) and the UPTRON management.

LMC sources said that the property was neither a free hold nor could the lease be transferred without the knowledge of LMC. The municipal corporation had challenged the sale and had even put up a board outside the premises that the property belonged to the LMC and any sale or purchase of it was bound to be illegal. Municipal sources said that IFCI in its notification of March 1 did not spell out the fact that the property was a leased out one by LMC. It only informed the LMC about the sale of property through a letter dated March 11, which only reached the municipal agency on March 16.

Sources said that the property was leased out to UPTRON under certain terms and conditions for a period of 30 years -- that is till 2015. So, if any private builder takes over the property it could be done for only two years. This only raised the question if the builder was at all aware of the fact that the property was leased out by the LMC? The fact that UPTRON had mortgaged it after getting a no-objection certificate (NOC) from the LMC further raises the suspicion about the entire deal taking place in connivance of UPTRON and LMC.

Municipal sources did not ruled out the possibility of the lease deed getting subsequently transferred in the name of the private builder who purchased it from IFDC at a cost of around Rs 74 crore. Municipal commissioner, RK Singh, when contacted by TOI said, that as of now nothing can be said with certainty. "We are examining all possibilities. We have already proceeded to cancel the lease. In any case the property would come back to LMC in another two years," he said.

Sources in the information technology department said that UPTRON was not only having property in Lucknow but also in cities like Mumbai, Kolkata and Moradabad. In Lucknow alone, it has four properties - one each in Gomtinagar and Dewa road and two near Kanpur road. In Mumbai, the beleaguered entity has an apartment in Nariman point. This property is priced at more than Rs 50 crore as per the market price.

Government sources said that in any case, the state government may not pay for the outstanding dues which mount to over Rs 140 crores. "The company was closed down more than a decade ago. The liabilities have been mounting ever since. The question is who is going to pay for it?" said a senior official in the IT department.

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